The longstanding and cost-effective trade routes that once connected Bangladesh to India’s seven northeastern states-popularly known as the “Seven Sisters”-have effectively collapsed following India’s sudden imposition of new restrictions on cross-border land exports from Bangladesh.
The Indian government has recently halted the import of various Bangladeshi products-including garments, processed food, plastics, furniture, and soft drinks-via land routes. This decision affects all land ports connected to the northeastern states of Assam, Meghalaya, Tripura, Mizoram, Manipur, Nagaland, and Arunachal Pradesh. Trade through key customs stations such as Burimari-Chengrabandha and Tamabil-Dawki has now been paralyzed.
Strategic Market Now Inaccessible: These northeastern states, which are geographically landlocked, heavily relied on neighboring Bangladesh for essential goods and consumer products. For Bangladesh, the Seven Sisters region had become a lucrative export destination due to its proximity, growing consumer demand, and lack of local industry.
“Exporting to these states from Bangladesh was not only faster but significantly cheaper,” said Mohammad Abul Kashem, Deputy Managing Director of AKH Group, a major garment exporter. “Now we’re being forced to consider sea routes that add weeks to delivery time and drastically increase logistics costs.”
Data from the National Board of Revenue (NBR) show that in fiscal year 2023-24, Bangladesh exported about USD 1.59 billion worth of goods to India. Roughly one-third of these exports-over $ 500 million-used land routes that passed through or served the northeastern Indian states. These shipments included essentials like garments, beverages, food products, and furniture, which had carved a growing market niche in the region.
PRAN, Hatil, and Others Affected: Large exporters such as PRAN-RFL Group and Hatil have been hit particularly hard. PRAN, which exported $ 50 million worth of products to India last fiscal year, saw 68% of those shipments pass through the now-restricted land ports. On Sunday, 17 of its trucks were stranded at Burimari-Chengrabandha following the enforcement of the new restrictions.”This is a huge blow,” said Ahsan Khan Chowdhury, Chairman and CEO of PRAN-RFL. “We have built strong market share in these Indian states over the years. It’s now at risk of collapsing.”
Hatil, a leading furniture manufacturer, exported USD 650,000 worth of wooden furniture to India last year-87% of it through now-blocked land ports. “This is not just a logistical challenge. It’s an existential threat to our India operations,” said Hatil Chairman Selim H Rahman.
No Seaports, No Alternatives: The core of the crisis lies in geography: the Seven Sisters region lacks seaports and is isolated from mainland India by difficult terrain. Transporting goods from the Indian heartland is expensive and time-consuming. Until now, Bangladeshi exports had provided an efficient alternative, with goods reaching northeastern markets within one to two days.
“The Seven Sisters are essentially cut off now,” said Mustafa Abid Khan, former member of the Bangladesh Trade and Tariff Commission. “There’s no realistic or economical way for Bangladesh to continue supplying goods to those states under current conditions.”He added that maritime shipping to these regions via Nhava Sheva or Kolkata ports is not viable. “There’s no direct sea access to the northeast. If you ship to Mumbai, the goods must then cross the entire width of India by land, which is impractical.”
Rerouting Woes: Following the restrictions, some exporters have attempted to reroute goods via sea. But this alternative is fraught with challenges. Exports to Nhava Sheva port near Mumbai require an initial sea journey from Chattogram to Colombo, Sri Lanka, followed by another leg to India. Port congestion in Colombo is further increasing delays.
“It used to take a day or two to deliver to Guwahati. Now it’s taking up to three weeks,” said Azmir Hossain Chowdhury, Head of Operations and Logistics at Mediterranean Shipping Company. “That’s simply not feasible for perishable or seasonal products.”
Moreover, shipping options from Chattogram to Kolkata are limited. Only two small container vessels run the route, and one of them operates irregularly. “We need regular and scalable service,” said Jahangir Hossain, Managing Director of Alvi Line, which operates one of the ships. “Right now, that just doesn’t exist.”
Wider Trade Consequences: The Seven Sisters region accounted for a sizable portion of Bangladesh’s exports to India. Losing access to these markets could dent Bangladesh’s broader export diversification strategy.India is Bangladesh’s ninth-largest export destination, accounting for 3.75% of total exports. In contrast, Bangladesh imports over USD 9 billion worth of goods from India, making India one of its largest trade partners. The imbalance already tilts heavily in India’s favor, and the recent barriers only deepen this gap.
“It’s ironic that when Bangladesh is trying to diversify its export destinations and reduce its dependence on Western markets, we’re losing ground in a neighboring country,” said M Masrur Reaz, Chairman of Policy Exchange. “This kind of restriction is damaging to bilateral trust and long-term trade development.”
Calls for Diplomatic Resolution: Exporters, economists, and business leaders are now urging both governments to engage in urgent dialogue to resolve the issue. Reaz echoed the sentiment. “Both countries must rise above narrow bureaucratic measures. If SAFTA or other regional frameworks were effective, these issues could be addressed institutionally. Unfortunately, they’re not.”
Future Uncertainty: Indian authorities have not provided a clear explanation for the abrupt restrictions. Some sources suggest that the move is part of a broader strategy to protect domestic industries or regulate informal trade, while others see it as a response to Bangladesh’s own restrictions-like its April ban on importing Indian yarn through land ports.
Regardless of the rationale, exporters on both sides are left in limbo, with investments, jobs, and supply chains at risk: “Trade should not be held hostage to policy tit-for-tats,” said Mohammad Abul Kashem of AKH Group. “We’ve spent years building this market. Losing it overnight is devastating.”
Land Route: The Lifeline of Bangladesh-India Trade: Land transportation has long been the cornerstone of Bangladesh’s export mechanism to India. In the fiscal year 2023-24, 81% of total exports to India-amounting to over USD 1.59 billion-were conducted through various land ports. This method proved quicker and cheaper, particularly beneficial for exporters targeting India’s northeastern states, which lack seaports and are more accessible by road from Bangladesh.
Garments are Bangladesh’s flagship export product, and about 76% of its USD 555.7 million garment exports to India last year were transported via land. This includes a substantial portion sent to Indian branches of international retailers like Marks & Spencer and Levi’s, as well as local brands.
However, the new Indian directive bans garment imports from Bangladesh via land ports, redirecting shipments to only two maritime options-Nhava Sheva in Mumbai and Kolkata Port. The rerouting, while technically feasible, introduces significant delays and cost hikes that many fear could undermine Bangladesh’s competitiveness in the Indian market.
“Earlier it used to take just a day or two to deliver garments through land ports. Now, if we go via sea, it could take over 21 days,” said Mohammad Abul Kashem, Deputy Managing Director of AKH Group, one of the country’s leading garment exporters. “This delay is not just costly, but also risky in terms of buyer commitment and market retention.”
Beyond Garments: A Multisectoral Impact: While the garment industry is hit the hardest, the restrictions extend far beyond clothing. India’s ban includes other key export items such as processed foods, plastic products, wooden furniture, yarn and yarn waste, fruits, and fruit-flavored beverages.In fiscal year 2023-24, exports of these items through the now-restricted land ports amounted to $ 76.6 million, involving over 166 Bangladeshi companies. Notable among them is the PRAN-RFL Group, a major player in processed foods and consumer products, which exported goods worth $ 50 million to India last year. About 68% of this-USD 33.8 million-was transported through the newly closed land routes.
Following the ban, 17 PRAN trucks were halted at the Burimari-Chengrabandha border. “We had built a strong market in the Indian northeastern states over many years. That position is now at serious risk,” said Ahsan Khan Chowdhury, Chairman and CEO of PRAN-RFL. “This issue requires immediate diplomatic engagement. Neither country should allow this disruption to persist.”
The furniture industry is similarly alarmed. Hatil, a prominent furniture exporter with showrooms in India, reported that 87% of its USD 650,000 exports were done via the now-restricted Burimari port. Chairman Selim H Rahman fears not only logistical headaches but also the upcoming Indian regulation requiring certification from the Bureau of Indian Standards (BIS) for furniture imports starting August.”The combination of new certification rules and current land route restrictions may altogether shut down our exports to India,” he warned.
Strategic Markets Now at Risk: The most affected markets are India’s northeastern states-Assam, Meghalaya, Tripura, Mizoram, Manipur, Nagaland, and Arunachal Pradesh-collectively known as the “Seven Sisters.” These landlocked regions have historically been easier and more cost-effective for Bangladeshi exporters to access via adjacent border ports.
“Exporting to these states through sea routes is practically impossible,” said Mustafa Abid Khan, former member of the Bangladesh Trade and Tariff Commission. “Goods would have to be shipped to distant ports like Nhava Sheva, and then transported across thousands of kilometers through India’s challenging terrain. It’s not viable for cost-sensitive products.”
With this new trade barrier in place, exports to these vital markets are expected to plummet. Experts fear that this will lead to not just economic losses, but also the erosion of longstanding trade relationships and market share that took years to build.
Shipping Bottlenecks and Limited Alternatives: Exporters exploring sea routes are running into their own challenges. The maritime route to Nhava Sheva port involves sending goods from Chattogram to Colombo in Sri Lanka, and then onward to India’s west coast. While theoretically manageable, the route is plagued by logistical congestion.
“Under normal conditions, it should take about seven days to ship containers from Chattogram to Nhava Sheva via Colombo,” said Azmir Hossain Chowdhury of Mediterranean Shipping Company. “But right now, it’s taking two to three weeks due to delays at Colombo.”
The alternative route to Kolkata Port is no less problematic. Only two small container vessels operate on the Chattogram-Kolkata route, and even those are inconsistent. “One of the ships runs irregularly, making it difficult for exporters to rely on it,” said Jahangir Hossain, Managing Director of Alvi Line Limited.These constraints only add to the woes of exporters already struggling with higher fuel costs, unstable exchange rates, and shrinking global demand in some sectors.
A Growing Pattern of Trade Barriers: This latest restriction is not an isolated event. Less than a month ago, on April 9, India withdrew permission for Bangladesh to use Kolkata Airport as a transit point for exporting goods to third countries. Just a week later, on April 15, Bangladesh’s National Board of Revenue (NBR) retaliated by banning the import of yarn from India through land routes-a move that drew criticism from local textile processors.”This tit-for-tat policy benefits no one,” said M Masrur Reaz, Chairman of Policy Exchange, a Dhaka-based think tank. “India is an important market for Bangladesh as we try to diversify exports beyond Europe and the U.S. Non-tariff barriers like this harm both exporters and consumers on both sides.”
